Muscat Duty Free (MDF) has revealed to TRBusiness it is in the midst of a five-year strategy having opened its shopping facilities at the new $1.8bn Muscat International Airport in March 2018.

As reported, MDF, which is a joint-venture between Oman Air (50%) and Aer Rianta International Middle East (50%) hosted a grand unveil of its 6,200sq m duty free space — eight months later. The old Muscat Airport served approximately 14 million passengers in 2017, while the new facility has the capacity to serve up to 20 million in phase one, progressing to 36 million in phase two and 48 million in phase three.

Speaking to TRBusiness at the recent Middle East and Africa Duty Free Association conference in Oman, which was hosted by MDF, General Manager Rob Marriott, who assumed the role from Martin Mullen in April 2019 said: “We started with our mission statement which is to give great value and availability in a safe and legal environment and provide exceptional passenger service by engaged, motivated, happy and highly trained colleagues.

“One of the things we have worked really hard on is building that engagement piece. Among the changes was moving from staff to colleagues. For me, we are a team and we win together. This has been really well received.”

He added: “We also changed from head office to support office because we are there to support the team in the airport.”

MOBILE CART CONCEPT

Lifting the lid on the retailer’s strategy, one element is the introduction of mobile carts carrying duty free products. Marriott explained: “We have a very high transit figure and when transit passengers get off the plane they immediately think ‘where is my gate?’

“I felt we were losing some of that [shopping] opportunity, so we developed a mobile cart which drives around and stops by the gate the flights are departing from to give people the opportunity to shop the duty free without entering the duty free environment. It has also been really well received.”

Marriott, who boasts more than 35 years’ experience in retailing and reports directly to the Board, believes MDF is yet to meet its objectives. “You have to listen to your colleagues and customers every day. I think the previous management team did a good job with the move from old to new. It is a totally different business here. It is three-times as big. We went from nine or 10 small shop units to 22 including some very big ones in there.”

In terms of opportunities, adding a strong local flavour quickly became priority. This was one of the things colleagues and customers were discussing at the outset, acknowledged Marriott. “We did this for two reasons. One because it sells and another because it was the right thing to do for in-country value. Supporting small businesses is something positive.”

Since moving to the new facility, certain changes have been made to drive spend. Marriott, who is mindful of the need to ensure passengers understand where they are within the terminal, what else there is and how far they are from gates commented: “Concept wise, for example, the perfumes and cosmetics area looked fantastic, but practically, we knew we needed to open up the area and give more visibility to the back of the shops. I don’t think we got everything right when we opened, but you have to continue adapting and listening.”

The same can be said when it comes to staying in touch with latest purchasing trends. “A perfect example was what I was saying about local products. I am not sure how we were missing them, but ultimately, we adapted. On the fashion front, we have also changed one or two brands, but overall we were not far away.”

Strong partnerships with suppliers/brands are key to ensuring optimum assortments and strong sales, emphasised Marriott. “My view is very simple. Retailers can’t dictate and suppliers can’t dictate. You must have a partnership.”

The joint-venture structure comprising Oman Air and Aer Rianta International Middle East, coupled with MDF’s strong partnership with Oman Airports is standing the retailer in good stead. “Oman Airports, with whom we have the concession is a super supportive partner. Additionally, the joint venture gives us great insight into the passenger base. It helps us a lot and ensures we can benefit.”

Elaborating on MDF’s partnership with Oman Air, Marriott acknowledged the difficulties associated with the inflight retail sector and said it could either be perceived as a challenge or opportunity. “Inflight is a very interesting business with some of the airlines pulling away from the sector. I am looking at it as an opportunity, because we have a great relationship with Oman Air, which allows us to work as a partnership. That said, I can’t say it is easy and you have to work really hard in all areas for the sale. You can’t just believe it will take care of itself.”

Exiting the inflight retail sector is the easy option, emphasised Marriott, who acknowledged the range must be relevant. “We listen to passengers and crew and change our range every six months. We also undertake crew training which is very important.

“When a passenger is considering buying something. They want to know about the product. If the person selling doesn’t know about the product they stand less chance of selling it.”

SUSTAINABILITY FOCUS

This year, challenges associated with the inflight sector underpinned by several withdrawals have continued to make headlines, but another hot topic has been sustainability. Marriott said: “You can’t hide away from this. It is really important. Each day without doing something is a day lost. Everyone has a moral duty. With our inflight business, for example, we now use recyclable paper, which cuts fuel costs. While it may not be us personally benefit, the climate is certainly the beneficiary.

“We are also actually looking at actual products which are properly sourced to ensure we are right on that.”

 With development continuing among retailers and airport operators at several Middle Eastern hubs including Dubai International, Bahrain International, where a new terminal extension is on the horizon and Abu Dhabi International, which will finally open its new Midfield facility next year, how will MDF look to keep pace?

“The opportunity we have here is tourism. The Ministry of Tourism is doing a phenomenal job of actually making people aware of Oman and its delights. It is becoming a holiday destination,” Marriott remarked.

Since assuming the role and entering DF&TR for the first time, Marriott has focused on ensuring availability, value and strong communication with passengers. “We only have the passenger in our shops for a small period of time so have to communicate with them really well.

“When I first got here, I believe there were 17 different colour schemes. We have since simplified this to red and white for value, black and white for passenger information (allowances, buy and collect) and another colour for events.

“If I am honest, duty free is great at making it look fantastic, but for me it is about keeping the range.”

Having started his career as a sales assistant, offering exceptional customer service has always been important to him. Earlier this year, MDF introduced the HOT Smile Campaign — H for hello, O for often and T for Thanks— to ensure passengers receive an excellent experience from colleagues. “I also hold colleague listening groups each week, which involves picking colleagues from different departments. I know how hard these people work and know they have the answers to everything. If we tap into this knowledge, we won’t be far wrong,” he concluded.